Role and Strategic Use of MDTFs: the way forward UNDG – Donor Meeting New York, 24 June 2011 1.

Similar presentations

Presentation on theme: "Role and Strategic Use of MDTFs: the way forward UNDG – Donor Meeting New York, 24 June 2011 1."— Presentation transcript:

1
Role and Strategic Use of MDTFs: the way forward UNDG – Donor Meeting New York, 24 June 2011 1

2
MDTFs are important funding instrument for UN system By end 2010, UN had 38 active MDTFs with total cumulative portfolio of about USD 5 billion 7 largest donors contributed 86% of total contributions MDTF Office is AA for 95% of MDTFs (99.5% of value) In 2009, MDTF contributions made up 7 % of non- core development funding for UN family (up from 3 % in 2006) For 2010, UN organisations reported USD 815 million in MDTF expenditures to MDTF Office 2

5
Training package for UNDAF roll-out countries Integrated in 2011 UNDAF regional workshops in Bangkok, Kigali, Dakar and Panama UNDG content developed and presented at workshops by JF sub-committee members Covers both Joint Programmes and MDTFs Available in English, French and Spanish Can be used for training at UNDG level (RC/HCs, RCOs, etc.), within individual UN agencies and for training other stakeholders. 5

6
UN inputs on Transition Financing: into INCAF, Intern. Dialogue & Busan 2010 Study on Pooled Funding in Transition Situations Inputs in different versions of the draft INCAF Transition Financing Guidance messaging around UN and World Bank MDTFs UNs key messages for Monrovia meeting of International Dialogue Key messages on Transition Financing for UN preparation for High Level Forum IV on Aid Effectiveness in Busan 6

7
UN inputs into INCAF-process: DRAFT table on aid instruments 7 Ownership and Alignment Harmonization and coordination Speed and flexibilityScope for risk management General budget support Sector budget support Jointly managed pooled funds that implement through country systems Potentially high, as resources aligned with government strategy. Allows for pooling of development partner resources. Can take time to establish, as requires significant up-front investments and capacity building. Provide framework for risk sharing Jointly managed pooled funds that do not implement through country systems Potentially high, as long as resources aligned with government strategy. Provides opportunity to develop country capacity for planning and management of resources. Allows for pooling of development partner resources. Might require increased transaction costs, as relies on external implementation Can take time to establish. Might limit flexibility once resources have been allocated. Provide framework for risk sharing External implementation can decrease risks of strategic failure through allowing more rapid delivery of results Externally managed pooled funds, including interim and emergency funds Can support ownership if engagement at strategic level, but in general not aligned with or using country systems. Can allow more targeted support to strengthen country systems, including through funding recurrent costs Allows for pooling of development partner resources. Might require increased transaction costs, as will rely on external implementation Allows for rapid establishment and funding decisions. Provides great deal of flexibility in allocations Rapid results focus in support of immediate peace dividend Requires clearly defined and time-bound mandate Project support to state institutions Project support to and through non-state actors

10
When is it strategic for UN system to establish an MDTF? Programmatic needs: What long-term strategic, multi-agency UN programmes benefit from a MDTF mechanism? - Humanitarian: what criteria for establishment of a new CHF? - Transition: combining and sequencing UN and World Bank MDTFs? - Development: One UN Fund to support new UNDAF? Global MDTFs? Coordination issues: What type of UN agendas benefit from the enhanced coordination and coherence that MDTFs bring? Financial Issues: What type of MDTFs attracts sufficient donor interest to be financial viability? What to do when donors are interested in UN programme and MDTF coordination mechanism, but not in contributing through MDTF ? 10